EURJPY: Consolidating Within A Range

The cross is now trapped in consolidation between the 101.59 level and the 98.31 level. EURJPY will have to break and hold above the 101.59 level trigger its upside recovery. This will create scope for a run at the 102.11 level with a break through there allowing for more upside towards the 103.92 level. Its daily RSI is bullish and pointing higher supporting this view. The alternative scenario is for EURJPY to return to the 98.31 level where a breach will target the 97.03 level. Further down, its Jun'2012 low at 95.58 level comes in as the next support with a cut through here resuming its broader bearishness towards the 95.00 level. All in all, EURJPY remains trapped in a consolidation range.